BUSINESS IN THE INTERNATIONAL CONTEXT
BUS 270B - SPRING 2004
Instructor:
Office:
Phone:
e-mail:
Office Hours:
Nila M. Wiese, Ph.D.
McIntyre 108C
879-3390
nwiese@ups.edu
Tu 3:30 – 4:30 pm; Fri 1:00-2:30pm
and by appointment
Objectives
The globalization of business is one of the most significant phenomena in business in the last
three decades. The continuous reduction of trade barriers, interconnectedness of countries,
organizations and individuals, and the formation of economic blocs in different regions of the
world provides for innumerable business opportunities. As companies increasingly explore
opportunities for business in global markets, it is becoming more and more important for
students in business to have a basic understanding of the international environment and its
impact on business as well as the similarities and differences of operating in foreign versus
domestic markets.
The main objective of this course is to provide students with an introduction to the international
business environment by examining the phenomenon of globalization from its historical,
economic, political, and cultural perspectives. The course will also provide a description and
analysis of the global business environment and its impact on managerial decisions.
Other learning objectives of this course are:
 To develop a basic understanding of strategic management in a global context
 To interpret articles in the popular press dealing with the international business
environment
 To strengthen students’ verbal and written communication skills
 To provoke and inspire critical and creative thinking
Required Readings
Friedman, T. L., The Lexus and The Olive Tree (2000), New York: Anchor Books
Micklethwait, J. & A. Wooldridge, A Future Perfect (2003), New York: Random House
Course Packet –Available at the UPS bookstore
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Class Format
This course will include a combination of lectures, class discussions, and written and oral
assignments. I would recommend that you come to class regularly and that you make a serious
attempt to keep up with the readings. You should come to class already having read the
chapter(s) and any other reading materials assigned for that particular day. If you have any
problems with the readings or assignments please come see me as early in the semester as
possible. You will be evaluated on the basis of written and oral work, examinations and class
participation.
Country Analysis Reports
This is a team project. Each team will be assigned a country for which you will prepare THREE
REPORTS on different aspects of that country’s environment. The team is expected to be the
class expert on its assigned country throughout the semester. The reports should be based on upto-date and thorough research and analysis of threats and opportunities in the areas of
political/legal environment, economic environment, cultural/human environment, and general
business climate of the country. The common goal for all three reports is to provide the reader
with an objective, accurate, and balanced assessment of the potential for international business
opportunities with or in that country. Detailed instructions are provided in pages 8-12 of this
syllabus. Each team will deliver an oral presentation of the most relevant aspects regarding their
assigned country.
Case Analysis
For each of the four cases in your Course Packet, prepare a written memo (2 pages maximum)
that addresses the questions posed at the end of the case, and any other questions added by the
instructor (Please see “Guidelines for Written Assignments”).
Participation
Your participation grade will be based on your involvement and contribution to class discussions
and completion of homework and in-class assignments. Both qualitative and quantitative aspects
of your participation will be evaluated. No make-ups will be given for missed in-class
assignments.
Exams
There will be two midterms and a final exam. All exams are comprehensive (i.e., they will
incorporate your knowledge and understanding of previously discussed topics), and will include
a combination of objective and open-ended questions.
World Geography Requirement
In addition to the exams, you will be given four quizzes on country location for certain regions of
the world. You are expected to familiarize yourself with the location of all countries.
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Guidelines for Written Assignments
All written assignments, unless otherwise specified, must follow these guidelines:
 Typed, double-spaced, and 1” all margins.
 No small fonts (Times New Roman 12, Courier 10cpi, or equivalent fonts are acceptable).
 Limit yourself to the page-length indicated for each assignment.
 Number your pages, use a spell checker and proofread your work. Spelling and grammar
will be taken into account in the grading of your assignments.
 Only spiral binding or upper-left corner staple are acceptable.
 All assignments are due at the beginning of class as indicated in the syllabus. Make a copy
of the assignment before submitting it. No late work will be accepted. There will be no extra
credit or make-ups.
Guidelines for Oral Presentation
 Keep your presentation short but relevant. The presentation should not exceed 15 minutes.
 Make the presentation interesting; be creative. Avoid monotonous reading or regurgitation
of written material.
 Every member of the team must participate in the oral presentation.
 Use of visual aids is encouraged. However, if you use visual aids do not stand in front of the
overhead projector or talk while looking down. If you must refer to a transparency,
look/point at the screen. Try to maintain eye contact with the audience at all times.
 Prepare, prepare, prepare!
Grading Distribution
Country Analysis Report
Political/Legal/Economic Environments
Cultural Environment/Business Etiquette
Conclusions/Recommendations
Oral presentation
25%
8%
8%
4%
5%
Exams
50%
Mid-Term 1
Mid-Term 2
Final
Quizzes - World Geography
15 %
15 %
15 %
5%
Case Analysis
10 %
Participation
15 %
TOTAL
________
100 %
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FINAL NOTE
Please return a 5 x 8 index card with the information requested no later than January 29th, (see
example below). Attach a photograph to the upper right-hand corner (a clear photocopy of your
ID will do). Please sign your name at the bottom. Your signature implies that you have
thoroughly read this syllabus and you understand the requirements/conditions of this class.
This card also will be used to keep a record of your participation grade.
Photo
Last Name, First Name (+ Name you preferred to be called):
Telephone/e-mail:
Major:
Status: (Sophomore, Junior, etc)
Nationality:
International Exposure: (e.g., countries in which you have lived, studied,
worked or visited; foreign languages):
Career interests:
Expectations for this class:
__________________________
Signature
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TENTATIVE SCHEDULE – SPRING 2004
Wk
1
2
3
4
5
Date
Topic
Reading Assignments
Jan 20
Introduction: Globalization
Jan 22
Globalization – Cont.
A Future Perfect - Ch 1 - 4
The Lexus & the Olive Tree - Ch 1, 3, 4
Jan 27
Globalization – Cont.
International Institutions: The
UN, IMF, WB, WTO
The Lexus & the Olive Tree - Ch 14, 16
CP*: App-International Institutions
Jan 29
International Institutions – Cont.
CP: App-Globalization and its
Discontents, Ch 1, 2
A Future Perfect - Ch 9
Feb 3
National Political Economies
CP: App-Global. & Discontents, Ch 3
A Future Perfect - Ch 8
The Lexus & the Olive Tree - Ch 6, 8-10
Feb 5
National Political Econ. – Cont.
CP: Worrying about China; Parts that
the bulldozers have not yet reached;
Privatization in Brazil
Feb 10
Trade
Case Due: Microsoft Troubles in China
CP: Asia is Falling in Love with Linux
Feb 12
Trade – Cont.
CP: Gains from trade: Ghana and South
Korea; The rise of Finland’s Nokia;
Crawfish wars; The great banana wars;
Shrimps, turtles and the WTO; The costs
of protectionism in the US
Feb 17
Regional Economic Integration
Geography Quiz 1- The Americas
CP: App-Powerpoint slides
The Lexus & the Olive Tree - Ch 12
Feb 19
Regional Econ. Integration.- Cont. CP: When East meets West; The great
escape; At 10, NAFTA is ready for an
overhaul; Free trade on trial
5
6
Feb 24
Mid-Term 1
Introduction to Regional Economic
Integration
Feb 26
Culture
CP: App-Supplementary Notes on
Culture
Mar 2
Culture – Cont.
Geography Quiz 2-Asia
A Future Perfect - Ch 10
The Lexus and the Olive Tree - Ch 13
Mar 4
Culture – Cont.
Case Due: Supreme Canning Company
CP: Guanxi, ties that bind
Mar 9
Foreign Direct Investment
Country Report 1 Due
CP: Starbucks’ foreign direct
investment; For Starbucks, there is no
place like home; Cemex’s foreign
acquisitions
Mar 11
Exporting & Importing
CP: App-Additional notes on market
entry strategies; Exporting strategy at
3M; Red Spot Paint & Varnish
9
Mar 15-19
Spring Break
10
Mar 23
Exporting – Cont.
Case Due: Quint Winery
Mar 25
Strategic Alliances
Geography Quiz 3-Europe
Mar 30
Strategic Alliances – Cont.
Case Due: Curtis Automotive Hoist
Apr 1
Mid-Term 2
Culture to Strategic Alliances
Apr 6
Global Strategy
Country Report 2 Due
The Lexus & the Olive Tree - Ch 11
CP: App-Powerpoint slides; Global
strategy at MTV Networks; IKEA
Apr 8
R&D & Marketing
CP: App-Powerpoint slides; UnileverSelling to India’s Poor; Can Man U
Score in America?
7
8
11
12
6
Apr 13
R&D & Marketing – Cont.
Geography Quiz 4-Africa
Apr 15
Manufacturing & Materials
Management
CP: App-Supplementary notes; Made to
Order; Dell Computer-replacing
inventories with information; Nike’s
voice looms large; Social accountability
in Central America
14
Apr 20, 22
Oral Presentations
Country Report 3 Due (4/20)
15
Apr 27
Human Resources
A Future Perfect - Ch 7
CP: Business success in Eastern Europe
Apr 29
The Future of Globalization
The Lexus & the Olive Tree - Ch 13, 17,
20
16
May 4
The Future of Globalization-Cont.
CP: App- Global. & Discontents, Ch 9
A Future Perfect - Ch 6, 15, 16,
Conclusion
17
May 13
Final (Thursday, 4:00-6:00 pm)
Global Strategy to Future of
Globalization
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*CP = Course Packet
NOTE: Changes to this schedule will be announced in class. It is your responsibility to be aware of these
changes whether or not you attend class on a regular basis.
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GUIDELINES FOR THE COUNTRY REPORTS
You work for a successful small/medium size company that is interested in international
opportunities for business in the country you have been assigned. You have been asked to do an
assessment of these opportunities for your boss and develop a set of recommendations for
internationalization of the company. He/she is interested in (1) an assessment of the country’s
economic conditions, (2) a political risk analysis of the country, and (3) a complete cultural
profile of the people in the country. Your objective is to provide your boss with the information
he/she has requested in a professionally written presentation that reflects thorough research and
analysis, and well-thought, logical, and persuasive conclusions and recommendations.
I. Preliminary Work Required

In order to meet the requirements of the three reports outlined below you need to conduct an
extensive research on the country’s political, legal, economic, physical and cultural
environments. The following list should provide you with a starting point. This list is by no
means inclusive, however; you should use your judgment in deciding other subjects not
included in this list, which might be relevant to your specific country.
Physical and geographical factors
Infrastructure
Political system and stability
Legal system; laws and regulations affecting business operations
Economic outlook: GNP, income distribution, exports/imports, overall level of
development, external debt, interest rates, inflation, currency issues, economic
policies (i.e., trade, investment, and so on), and overall stability.
Demographics
Cultural characteristics, values, attitudes and behavior of consumers and the workforce.
Business customs/etiquette, negotiating styles, and other cultural aspects.
II. Report One (Due March 9th)

Report One should be 6-8 pages long and must include three sections:
1) A Description of your Company and its Strategic Goals
Choose a line of business in which you are interested and select a company
(small/medium size) you would like to use for your reports. Define as specifically as
you can your company’s product offering(s). Include in this section the age and size
of your company, its current target market(s), its competitive position in the US, and
its degree of internationalization or experience with foreign markets. Finally, identify
the strategic goal(s) your company wishes to achieve. Make any assumptions you
deem necessary. Your choice of company must be approved by the instructor no later
than February 10th.
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2) A Political Risk Analysis of the Country
Describe clearly and thoroughly the political and legal environments of the country.
Focus primarily, although not exclusively, on:
 the current state and stability of the country’s political and legal environments:
What kind of government does the country have (democracy, monarchy, etc.)?
What is the predominant political/ideological philosophy of the country
(collectivist/individualist, democratic/autocratic/totalitarian)? What kind of legal
system does it have (civil, common, theocratic, mixed)? Which groups are the
most influential or powerful in the country with regard to legal/political
decisions? What are the major sources of political risk in the country?
 the role of government in business activities (i.e., does the government hinders,
aids and/or participates in business activities? How?)
 any changes occurring in the country’s political and legal environments (e.g.,
changes in leaders, government policies, regulations, and so forth).
It is critical that you discuss the effects/impact of the political and legal environments
on the country’s business climate, and that you provide your assessment of political
risk at the present time and in the near future. I expect you to incorporate in this
section our class discussion on political risk. Be sure to summarize your discussion
in terms of the threats and opportunities for business in or with the country.
3) A Description of the Country’s Economic Environment
This section of the report should focus on the economic conditions of the country.
The discussion should address the present state and changes occurring in the
economy, which might improve or worsen your country’s competitiveness in the
global market. Some of the key issues you should include are:



Factors of Production: describe and evaluate the country’s factors of
production (labor, land, natural resources, technology, capital, infrastructure),
in terms of size, quality, exclusivity, and complexity. Do one or more factors
of production give the country a competitive advantage? Make sure you
analyze current state and changes or trends for the near future.
Economic Indicators: population size, GNP (total, per capita, growth rate),
income distribution, inflation rates, interest rates, debt, currency (value,
stability, availability), foreign direct investment flows, imports/exports, and
overall competitive environment.
Changes: Point out major changes in the economy as well as in the market
itself (e.g., growing purchasing power, emerging needs, tastes and preferences
among segments of the population, increasing flows of FDI, and so forth).
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III. Report Two (Due April 6th)

Report Two should be 5-6 pages long and must include:
1) A Demographic Profile.
Population size, growth rate, density. Distribution of the population in terms of ethnic
groups, religion, language, age, gender, urban/rural, social classes, and so forth.
2) A Cultural Profile
Provide a clear description of the predominant values, attitudes, and behaviors of
people in your country. Evaluate and analyze this information and draw conclusions
regarding how culture affects consumers, workers, businesspeople and government
officials in the country.
3) Managerial Styles and Business Etiquette
Describe and evaluate managerial and organizational systems typical of the country.
Also, describe cultural aspects which affect the way business is conducted in the
country, such as business etiquette, business customs, and managerial styles.
IV. Report Three (Due April 20th)
Report three should be 2-3 pages long. This report must focus on providing your boss with a
summary of your overall assessment of the country’s potential based on the two previous
reports. It must also include a full set of recommendations on the strategy your company
should pursue with regard to doing business in or with this country. You must recommend a
mode of entry and address any basic implementation issues and time frame considerations
which are relevant to the recommendations you make.
It is critical to the effectiveness of your report that you draw logical links from your analysis
to your final recommendations. All of your conclusions and recommendations must be fully
justified. Simple reporting of facts will not lead to an acceptable report unless those facts are
also analyzed and evaluated critically and objectively.
V. General Requirements
1. The reports must be prepared following the specifications for written assignments in your
syllabus. Report One should be 6-8 pages long; Report Two should be 5-6 pages long, and
Report Three should be 2-3 pages long; executive summary, appendices, and references
excluded.
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2. All three reports must include an Executive Summary. The executive summary should
highlight the most important findings and conclusions/recommendations. Do not use the
executive summary as an introduction section. (You can use the first paragraph in your
report to indicate the purpose of the report and/or to outline the organization of it). The
executive summaries should be written after the reports are completed, in a memo format
(shown below), be no longer than one page, and should be placed at the beginning of the
paper.
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
...........
...........
...........
...........
3. You must use at least 8 recent references for Report One, and at least 4 references for Report
Two. You can use some of the same references for more than one report, but a total of at
least ten different sources is required. One of the references may be in the form of an
interview with someone knowledgeable of the country. Be sure to give full name, address
and phone number of the interviewee in your list of references. Demographic, economic,
legal, and political information should be no more that two years old (2000 or later). Since
cultural values change more slowly, references on cultural aspects may be somewhat older
(1985 or later). You are expected to use a variety of sources for your research. A good
quality paper should include data from a mix of sources, including specialized encyclopedias,
periodicals (magazines, newspapers, journals), books, and on-line sources and/or CDROM
databases.
4. Be sure to integrate, synthesize, and interpret information you have gathered. Do not just
copy facts or passages from your references. Your thoughts and assessment of the
opportunities and threats of doing business with or in the country are very important.
5. Each report must be well organized and professionally prepared. Try to organize your
material into clearly labeled sub-sections. (Note: Please use sub-headings only when
appropriate and avoid one-sentence or one-paragraph sections). Include a list of your
references (bibliography) with each report. Also, attach to the last report a list of all sources
used. The professional writing quality of your paper will be evaluated based on correct use
of grammar and composition, spelling, organization, clarity, creativity, and the uniqueness of
your graphics, exhibits, etc.
6. Be certain to document your references throughout the paper. (Use the bibliographic
style recommended by the Journal of Marketing). I will deduct points from your grade if the
paper is not documented throughout (within the text) or the list of references (bibliography)
is not written using the appropriate format. Plagiarism, the use of other people’s work
without attribution, is strictly prohibited. The quality of your research effort will be
evaluated based on the amount and type of sources used, the currentness of your information,
and proper documentation.
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7. Deadlines for each individual report are noted in the schedule and in the instructions above.
You will be pressed for time given the workload in the course; therefore, I recommend that
you do not wait until the last minute. It is your responsibility to anticipate unexpected
circumstances including getting sick a few days prior to the deadlines, having exams those
weeks, running out of paper, ink, etc. Backup your work (i.e., have two disk copies!!) and
plan on finishing at least one day before the papers are due. Late papers will be accepted
with a 5% per day penalty (No papers will be accepted which are more than four days
overdue). This 5% penalty will apply regardless of your reason for turning the paper
in at a later date.
VI. Grading Criteria for Country Analysis Reports
The projects will be graded based on ten point scales with regard to the following aspects:

Executive Summary

Completeness and Relevance of Content

Analysis and Evaluation of Information presented

Overall Assessment of Country’s Potential

Conclusions and Recommendations

Professional Writing Quality

Research Effort Quality
VII. Oral Presentation (April 20, 22)
The teams’ oral presentations should cover the most relevant aspects regarding the country’s
business environment and final recommendations. Every team member is expected to participate
in the oral presentation. Follow the guidelines for oral presentations provided in the syllabus.
The oral presentation should focus on the following aspects:
(1) Brief introduction of your company
(2) Summary of the political risk analysis
(3) Brief discussion of the cultural aspects that are most relevant to international business
(4) Assessment of the threats and opportunities of doing business in or with the country
(5) Final recommendations
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